TAIPEI (TVBS News) — Taiwan's semiconductor industry is poised for significant growth in 2024, fueled by strategic advantages and global competition.
Industry leaders and experts weigh in on the trends and challenges that define the sector's landscape.
Strategic Advantages and Global Dominance
Taiwan's semiconductor prowess is deeply rooted in its skilled workforce and robust industrial cluster, according to Wang Chien-chuan, vice president of Chung-Hua Institution for Economic Research.
Wang emphasized, "Taiwan's advantage lies in having the best talents and an industrial cluster. Customers provide continuous feedback, and we also have TSMC. They can lend intellectual property rights to OEM partners, allowing customers to avoid these costs and be more willing to work with Taiwan."
This sentiment is echoed by the ongoing global competition in the semiconductor field, as countries like China, the U.S., Japan, South Korea, and Taiwan vie for technological supremacy.
Taiwan Semiconductor Manufacturing Company (TSMC) continues to uphold its market dominance with a 57.9% share in the third quarter of 2023.
Despite the competition and geopolitical challenges, TSMC is expanding its global reach with new investments, including a fab in Japan and a project in Arizona.
Growth Trends and the Road Ahead
Liu Pei-chen, a Taiwan Industry Economics Database researcher, predicts a promising future for the global semiconductor production capacity.
"In 2024, global semiconductor production capacity will demonstrate a continuous growth trend, primarily due to the industry returning to a growth track," Liu stated.
The World Fab Forecast report by SEMI supports this outlook, projecting a 6.4% increase in wafer production in 2024, marking the first time it surpasses 30 million wafers per month. The burgeoning demand for generative AI largely drives this growth.
As the terminal market's technology demand stabilizes and inflation rates decelerate, the semiconductor sector is anticipated to shift from a rapid expansion phase to a recovery stage.
The fierce competition for market leadership continues as industry giants like Intel, TSMC, and Korea's Samsung aggressively pursue innovation and market share.